Do You Have to Pay Back SBA Loans?
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What is an SBA Loan?
7(a) loans. The 7(a) loans for small businesses are among the most popular options, as they offer up to $5 million at low interest rates and can be used for working capital, to refinance business debt, or to buy furniture, fixtures, or supplies. CDC/504 loans. SBA’s CDC/504 loans also have a cap of $5 million. They can be used to purchase buildings or land, build new facilities, or buy equipment. Microloans. There are also microloans for businesses who need a smaller amount of capital. These loans provide up to $50,000 to help businesses start up or expand operations.
What is an Economic Injury Disaster Loan?
Economic Injury Disaster Advance Grants
The EIDL Targeted and Supplemental Targeted Advances
Your business must be located in a low-income community as defined by IRS Code 45D(e). You must be able to prove that you suffered more than a 50% economic loss over eight weeks compared to the same period the previous year (the period you can consider starts March 2, 2020). Your business must have 10 or fewer employees.
Do I Have to Pay Back an SBA Disaster Relief Loan?
EIDL Loan Terms
Your business must have suffered working capital losses because of the pandemic. Your business must have 500 or fewer employees. Cooperatives, agricultural enterprises, private nonprofits, faith-based organizations, sole proprietors, and independent contractors may be eligible. Businesses involved in illegal activities, multi-level sales, speculation, investment, gambling, or lending are not eligible for the EIDL program.
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